Singapore Bunker Market Is Under Pressure

The Singapore bunker fuel market is coming under mounting pressure from arrivals of arbitrage cargoes of high-viscosity fuel oil in January and February, traders said. About 620,000 tons of fuel oil of between 380 and 700 viscosity are scheduled to arrive in Singapore between now and early February, they said. The rising supplies have led to a widening of the spread between 180-cst and 380-cst fuel oil to about $7 to $7.5 per ton against the more usual $4 to $6, traders said. The arbitrage cargoes were sourced from several countries including Venezuela, traditional supplier Saudi Arabia and regional producer India. Two Japanese traders were heard moving three 80,000-ton Venezuela cargoes, a higher than normal volume because of dwindling winter domestic consumption in the South American producer. - (Reuters)